JAKARTA, Sept 30 Asia Pulse - The Indonesian Association of Palm OilCompanies (Gapki) predicted that the price of palm oil will increase by 5per cent early next year.

Gapki chairman Derom Bangun said China and India will remain the largestbuyers of crude palm oil (CPO) from Indonesia.

Bangun said CPO production of Malaysia and Indonesia, respectively thelargest and the second largest producers of CPO, and account for most ofthe world production, will increase only by 1.3 million tons in 2005 asagainst an increase of 1.5 million tons in world's consumption.

He said Indonesian production will increase by 800,000 tons and Malaysiacould increase only its production by 500,000 tons

Bangun said Indonesia is expected to export 1 million tons of CPO to Indiathis year.

India needs around 11 million tons of vegetable oils a year includingsoybean oil, corn oil and CPO.

(ANTARA)